Prepare all journal entries necessary on those three dates.( Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select " No Entry " for the account titles and enter 0 for the amounts.) 4) Faith Evans Corporation is a regional company which is an SEC registrant. The corporation’ s securities are thinly traded on NASDAQ. Faith Evans Corp. has issued 11,770 units. Each unit consists of a $ 589 par, 12 % subordinated debenture and 12 shares of $ 6 par common stock. The investment banker has retained 471 units as the underwriting fee. The other 11,299 units were sold to outside investors for cash at $ 1,036 per unit. Prior to this sale, the 2-week ask price of common stock was $ 47 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value.
Prepare the journal entry to record Evans’ transaction, under the following conditions.( Round answers to 0 decimal places, e. g. $ 38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select " No Entry " for the account titles and enter 0 for the amounts.)( 1) Employing the incremental method.( 2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value.
4) Lotoya Davis Corporation has 11.01 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 64 cents per share cash dividend to stockholders of record as of June 14, payable June 30.
( a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.( Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select " No Entry " for the account titles and enter 0 for the amounts.)
( b) How would the entry differ if the dividend were a liquidating dividend?( Credit account titles are automatically indented when